Signs of recovery in April for ‘fragile’ Perth property market

While prices fell again, the decline appears to be slowing, with CoreLogic’s latest home value index showing the rate of decline for dwelling values in Perth held at -0.4 per cent for a second consecutive month.

Reiwa president Damian Collins said while prices remained soft, the percentage at which dwelling values were dropping had slowed from -1.46 per cent in February 2019 to -0.4 per cent in March and April.

“March and April have recorded the lowest level of declines since June 2018, which is an encouraging sign in a challenging market,” he said.

“While we don’t expect to see any notable price increases in the immediate future, price values look like they are starting to stabilise.”

Despite overall dwelling prices falling during the month, reiwa.com sales data showed 24 per cent of suburbs across the metropolitan area recorded an increase in median house sale price in April.

Gosnells was the top performing suburb, with its median sale price increasing 3.4 per cent.

Other suburbs to record an improvement were Dudley Park, Scarborough, Marangaroo and Canning Vale.

Reiwa.com data also showed the volume of properties for sale reduced three per cent during the month.

“While these latest figures indicate we might be seeing the signs of a recovery on the horizon, our local market is still fragile,” Mr Collins said.

“With the Federal election looming, Reiwa remains concerned that any changes to national tax policies, like negative gearing and capital gains tax, will further stifle any green shoots of improvement that may be starting to emerge.

“We need our state and federal governments to do everything they can to support the recovery of the WA property market – not hinder it.”

While the sales market remained subdued, more improvements were recorded in the rental market.

House and unit rent prices each increased $10 per week compared to April 2018.

“Perth’s median house and unit prices have strengthened in the last 12 months,” Mr Collins said.

“Reiwa.com data shows the median weekly house rent has increased from $350 to $360 over the last year, while unit rents have lifted from $320 to $330.”

Perth’s overall median rent price continued to hold at $350 per week, however the data showed 24 per cent of suburbs recorded a price increase during the month.

“The suburbs to record the most notable growth in median rent price in April were Stirling, Mindarie, Rivervale, Hamilton Hill and Quinns Rock,” Mr Collins said.

“While rental listings are down 20 per cent compared to April 2018, they have increased 7 per cent during the month,” Mr Collins said.

“This has come at a time when listings for sale have started to decline, despite sales remaining low, which could indicate that vendors are choosing to remove their property from the market and try their hand at renting it out instead.”